Rule 35 of the General Financial Rules 2017 Loss of immovable property by fire flood etc

Original Rule Text

Rule 35 Loss of immovable property by fire, flood etc. All loss of immovable property exceeding Rupees fifty thousand, such as buildings, communications, or other works, caused by fire, flood, cyclone, earthquake or any other natural cause, shall be reported at once by the subordinate authority concerned to Government through the usual channel. All other losses should be immediately brought to the notice of the next higher authority.

Visual Summary

Immovable Property
Applies to buildings, roads, and other fixed structures.

₹50,000 Threshold
The value of the loss determines the reporting procedure.

Immediate Reporting
Losses must be reported without delay to the correct authority.

Executive Summary

This rule establishes a two-tier system for reporting the loss of government-owned immovable property (like buildings or roads) due to natural causes. If the loss exceeds ₹50,000, the local authority must report it immediately to the central Government. If the loss is ₹50,000 or less, it must be reported immediately to the next higher authority in the chain of command.

In-Depth Analysis of the Rule

Introduction
Rule 35 provides a clear and structured procedure for government officials to report damage to immovable property caused by natural disasters. The primary goal is to ensure that significant losses are communicated to the highest levels of government promptly, while smaller losses are handled efficiently at a local level. This helps in quick assessment, allocation of resources for repairs, and maintaining accountability.

Breakdown of the Rule
The rule has two main components based on a monetary threshold:

Losses Exceeding ₹50,000: When immovable property like a government building, road, or bridge is damaged by a natural cause (fire, flood, earthquake, etc.) and the estimated loss is more than ₹50,000, the ‘subordinate authority’ (the local official in charge of the property) has a duty to report it ‘at once’. This report must be sent to the ‘Government’ (meaning the central government) through the ‘usual channel’ (the established official hierarchy). This ensures that major incidents get immediate high-level attention.
All Other Losses (₹50,000 or less): For any loss of immovable property due to natural causes that is valued at ₹50,000 or less, the reporting requirement is simpler. The subordinate authority must immediately inform their ‘next higher authority’—essentially, their direct supervisor or the next level in the command chain. This allows for quicker, localized responses to minor damages without burdening the central government with reports of every small incident.

Practical Example
Imagine a government-owned community hall is damaged during a cyclone. An engineer from the local Public Works Department assesses the damage.

Scenario A: The engineer estimates the repair cost to be ₹2,00,000. Since this exceeds the ₹50,000 threshold, the engineer must immediately prepare a report and send it through the official channels (e.g., to the District Collector, then to the State department, and finally to the relevant central ministry).
Scenario B: The engineer finds that only a few windows are broken and estimates the repair cost at ₹30,000. Since this is below the threshold, the engineer’s duty is to immediately report the damage to their direct superior, such as the Executive Engineer of the district.

Conclusion
Rule 35 creates an efficient system for managing and reporting losses of government property. By setting a clear financial threshold, it ensures that significant damages are escalated for a coordinated response, while minor issues are handled at the appropriate local level, promoting both accountability and operational efficiency.

Related Provisions

This rule is part of a broader framework for managing government property and financial losses. Understanding the following related rules provides a more complete picture:

Rule 33: Report of Losses – This is the general rule requiring the immediate reporting of any loss of public money, revenue, or property to higher authorities and audit officers. Rule 35 is a specific application of this principle to immovable property.
Rule 34: Loss of Government Property due to fire, theft, fraud – This rule deals with losses from man-made causes like theft or fraud and requires reporting to the police, which is different from Rule 35’s focus on natural calamities.
Rule 36: Report to Audit and Accounts Officers – This rule mandates that after a full inquiry, a detailed report of the loss must be sent to government and audit/accounts officers, which is the next step after the initial reporting required by Rule 35.

Learning Aids

Mnemonics

BIG vs. SMALL:
Big loss (over ₹50k) -> Inform Government.
Small loss (under ₹50k) -> Mention to Above Local Leader (next higher authority).

Mindmap

Multiple Choice Questions (MCQs)

1. What is the specific monetary threshold mentioned in Rule 35 for reporting the loss of immovable property directly to the Government?

A) Rupees twenty-five thousand
B) Rupees fifty thousand
C) Rupees one lakh
D) There is no monetary threshold mentioned.

Show Answer

Correct Answer: B) Rupees fifty thousand. The rule states that losses ‘exceeding Rupees fifty thousand’ must be reported to the Government.

2. A government office building suffers damage worth ₹45,000 from a flood. According to Rule 35, to whom must the subordinate authority report this loss?

A) Directly to the Government through the usual channel.
B) To the next higher authority.
C) To the Statutory Audit Officer.
D) To the local police station.

Show Answer

Correct Answer: B) To the next higher authority. Since the loss does not exceed ₹50,000, it falls under ‘All other losses’ which should be brought to the notice of the next higher authority.

3. Rule 35 specifically applies to which of the following scenarios?

A) Loss of office furniture due to theft.
B) Damage to a government road caused by an earthquake.
C) Shortage of cash from the office safe due to fraud.
D) Damage to a building due to poor maintenance and negligence.

Show Answer

Correct Answer: B) Damage to a government road caused by an earthquake. Rule 35 is specific to ‘immovable property’ (like a road) lost due to a ‘natural cause’ (like an earthquake). The other options involve movable property, man-made causes, or negligence, which are covered by other rules.

Frequently Asked Questions

What is considered ‘immovable property’ under this rule?

Immovable property refers to assets that cannot be moved, such as land, buildings, roads, communication infrastructure (like telephone lines or towers), and other fixed works.

What does ‘report at once’ or ‘immediately’ mean?

It means the report should be made as soon as possible, without any unnecessary delay, after the loss has been discovered and a preliminary assessment of the damage has been made. The urgency is to ensure higher authorities are aware of the situation promptly.

What if the exact value of the loss isn’t known immediately?

A preliminary, good-faith estimate should be used to decide the reporting channel. If the damage is clearly significant and likely to exceed ₹50,000, it should be reported to the Government. A detailed assessment can follow, but the initial report should not be delayed waiting for a precise valuation.

Key Takeaways

The reporting procedure for damaged government buildings or roads depends on the value of the loss.
If the loss from a natural cause is over ₹50,000, report it to the central Government immediately.
If the loss is ₹50,000 or less, report it to your immediate boss (next higher authority) right away.
This rule applies specifically to immovable property damaged by natural causes like floods, fires, or earthquakes.

Continue to Rule 36 →